Definitions from Black's Law Dictionary: 2nd Edition and Ballentine's Law Dictionary as are available for each term in each dictionary.
  • Black's Law Dictionary: 2nd Edition

    To set off one claim against another; to deduct a debt due to one from a debt which one owes. Johnson v. Signal Co.., 57 N. J. Eq. 79, 4f> Atl. 193 ; Pepper v. Warren, 2 Marv. (Del.) 225, 43 Atl. 91. This verb corresponds only to the second meaning of "defalcation" as given above; a public officer or trustee who misappropriates or embezzles funds in his hands is not said to "defalk."